Rogue Clackamas River Water board members seek to control district funds

The Clackamas River Water building stands in Clackamas, Ore., in late October 2012. Infighting on the Clackamas River Water District board reached new heights Tuesday, Oct. 30, when two members seized power by appointing two new members. Molly Harbarger/The Oregonian

CLACKAMAS -- Two rogue members of the Clackamas River Water board intend to visit U.S. Bank on Tuesday to try to gain firmer control of district funds.

Commissioner Grafton Sterling and contested Commissioner Jeff Monroy said they hope to speak with the bank's attorneys and block General Manager Lee Moore's access to the district's bank accounts.

"I seriously put forth that we contact the bank directly, even if it necessitates us all going to the downtown headquarters directly," Sterling said through a mobile phone speakerphone at a disputed Thursday night meeting. "I feel confident if we, as a board (go down there), that their attorneys will be able to determine as to who should and shouldn't have control of ratepayer money."

On Oct. 30, Sterling, Monroy and Commissioner Patricia Holloway staged a six-hour takeover of the dysfunctional, conflict-plagued water district board, which at the time had three open positions.

Holloway and Sterling, who were elected to their positions, appointed Larry Sowa, a former Clackamas County commissioner, and Jeff Monroy to the board.
Holloway, Sterling and Monroy -- Sowa did not attend -- then placed Moore on administrative leave. They
also fired the board's attorney, Dean Phillips, and hired Holloway's personal attorney, James D. Huffman,
expecting the water district to pay his fees.

Clackamas County
officials, Moore, Clackamas River Water staff and others say the trio's
actions that day were invalid, as Holloway and Sterling did not
constitute a three-person quorum required to legally meet or take action. Huffman contended that a quorum is not required to appoint new members.

In making the appointments, county commissioners rejected a
cease-and-desist request from Huffman claiming that county commissioners lacked the
authority to appoint board members.

Holloway, Monroy and Sterling decided Thursday to visit U.S. Bank at a makeshift meeting that county officials and Moore contend was also invalid.

On Thursday afternoon, Moore said he planned to lock the building's doors after the close of business. But those arriving for the 7 p.m. meeting called by the rogue board found the main door unlocked, though the conference room where board meetings are usually held was locked.

That didn't stop Holloway and Monroy from setting up shop in the building's lobby. Sterling called into the meeting and communicated through a mobile phone speakerphone set on the coffee table in the lobby.

Warren Mitchell, a former Clackamas River Water commissioner, was the sole audience member at the disputed Nov. 8 board meeting. Mitchell, who had provided pizza to Patricia Holloway, Grafton Sterling and Jeff Monroy during their six-hour takeover attempt Oct. 30, did not bring any snacks to share for Thursday night's meeting. Yuxing Zheng/The Oregonian

The sole audience member, former commissioner Warren Mitchell, sat on a row of cabinets nearby. He said that at Holloway's request, he came prepared with tables in case the building was locked and they needed to conduct the meeting in the parking lot.

Little got done at Thursday night's meeting, as no staff members
attended the meeting and no informational reports were available. The
rogue board postponed most agenda items to an as-yet-undetermined future
meeting.

Moore did not return a message seeking comment Friday afternoon. He has continued to show up to work since the Oct. 30 takeover meeting.

Clackamas River Water's peculiar, circus-esque situation arose after the
resignation of Commissioner Mike Cardwell in July. Normally, the water
district recruits and appoints new board members, but a monthslong 2-2
voting deadlock kept the board from appointing a tie-breaking fifth
board member.

The matter then fell to Clackamas County
commissioners, who conducted an application and interview process before
appointing Sowa, Humberston and Kalani Thursday morning.

Patricia Holloway and Jeff Monroy conducted a disputed Clackamas River Water board meeting Nov. 8 in the lobby of the beleaguered water district's headquarters. County officials and the district's general manager, Lee Moore, contend the meeting was inappropriately called. Yuxing Zheng/The Oregonian

Clackamas River Water is under growing pressure to get back on track -- from
ratepayers, county officials and the district's own insurance provider.

In
September, the Special Districts Association of Oregon notified the
water district that it would cancel the agency's property and liability
insurance in January, saying it has a "fiduciary responsibility" to
protect other members from costs and liability generated by the
district's contentious and dysfunctional board.

The
association's executive director, Frank Stratton, later said the
insurance would be renewed if the full board resigned. That led to the
resignations of Commissioners Kami Kehoe and Barbara Kemper, who left
their positions at the end of October.

Holloway and Sterling have
rejected calls to resign. A ratepayer, Naomi Angier, has since launched recall petitions against the two.

The Clackamas River Water Board has struggled for years with infighting and dysfunction.
In the past decade, the board has burned through six general and
interim managers and, because of recurring accusations of mismanagement,
submitted to three expensive special audits and a half-dozen ethics and
workplace complaints. The district racked up about $1 million in legal
fees in the past four years, mostly from infighting among board members.